Paramount revenue gets lift from Top Gun sequel’s blockbuster success
Aug 4 (Reuters) - Paramount Global PARA.O reported better-than-expected quarterly revenue on Thursday, powered by the May release of blockbuster Tom Cruise-starrer Top Gun: Maverick even as streaming subscriber growth slowed.
The movie outpaced Disney’s Doctor Strange sequel to become the highest grossing film in 2022, bringing Paramount much needed relief in its film unit that has been struggling since the pandemic outbreak.
The film, which crossed $1 billion in box office sales, had also surpassed Titanic to become the company's No. 1 domestic grossing film of all time.
Maverick powered a 126% jump in revenue at Paramount’s filmed entertainment business in the three months to June.
That helped offset challenges in the company’s streaming and TV ads business, which are grappling with effects of decades-high inflation.
Paramount said global streaming subscribers rose to about 64 million. Paramount+, its flagship streaming platform, added 4.9 million subscribers.
The company said it removed about 3.9 million subscribers from its Russia exit.
Revenue at the company, formerly known as ViacomCBS, rose 19% to $7.78 billion in the second quarter ended June 30, compared with analysts’ average estimate of $7.57 billion, according to IBES data from Refinitiv.
Operating income fell to $819 million, from $1.23 billion a year earlier.
Excluding items, Paramount earned 64 cents per share.